Building a good board of directors

Fred Wilson lists some points on how to build a good board:

  • Have at least one founder on the board. Many VCs like to move the founders out of the way. They think they will be difficult and meddle. That’s always a risk, but the benefit of having founders on the board vastly outweighs any downside in my mind.
  • Local board members are better. They will come to the meetings. Avoid too many board members who live elsewhere. They’ll call into the meetings. Trust me. And that sucks.
  • Have at least one and ideally two industry insiders on the board who are independent of the founders and the VCs. They should bring operating experience. They should be mentors to the CEO.
  • Bring the senior management to the board meetings.Keep your board to seven members or less. Five is ideal in my experience but sometimes you need seven to get the right diversity. Two insiders, one to three VCs, and one to two industry people is ideal once the company gets to a certain scale.

(I read about this first on Rajesh’s blog)

Advertisements

Author: anand

Currently CleverTap. Founder & ex-CTO - burrp. A techie and an entrepreneur at heart. Have worked in US, China and India.

One thought on “Building a good board of directors”

  1. Your post reminds me of an experience I had with a board member who also had founded the organization decades earlier and remained as director. She had invited me to join the board, then had me asked to resign after I began exercising my fiduciary responsibilities e.g. questioning the basis for the pension plan and insurance coverage. She obviously wanted to be the only authority and bristled at any impingement on that authority and what she evidently saw a threat to the sizable benefits she was receiving. Board politics are almost always complex, and they caused me to quit the presidency of my co-op board in November. I provide details in my blog: http://www.ServiceYouCanTrustBlog.com

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s